The Chairman of Dankotuwa Porcelain PLC (DPL), Rajan Asirwatham says the group is presently aggressively refocusing its business on high growth emerging markets and significant groundwork has already been done to rapidly expand the company’s operations in India.
Addressing shareholders at the release of the 2014 Annual Report, the Chairman said their plans include the launch of their own showrooms in India with products developed by both DPL and Royal Fernwood Porcelain Limited (RFPL) specifically for the affluent Indian consumer.
“We are, therefore, working towards a future encompassing higher value added products being manufactured for higher growth markets resulting in increased value added and profitability for all stakeholders in the Group,” Asirwatham said.
He further noted that the Group has also engaged with a leading science and research institution to develop nano-engineered materials which will lead to much higher value added porcelain products being manufactured by the company in the future.
During the year ended 31 March 2015, DPL made a loss of Rs.11 million compared to a profit of Rs.24 million posted in the corresponding period of the previous financial year. At a Group level with the consolidation of RFPL, the DPL Group posted a loss of Rs.157 million due to the significant restructuring charges and losses at RFPL despite a 29% growth in consolidated revenue.
“The losses generated at RFPL have been largely due to inefficient manufacturing yields and lower margins received on orders from distressed European markets. The inefficient manufacturing yields have been primarily due to weak management at RFPL and high rates of labor turnover which have been addressed and rectified during the year. In addition, with the consolidation and integration of activities between DPL and RFPL, your company now has a vastly expanded manufacturing capability and product range to offer domestic and international customers,” the Chairman pointed out.